A Nonlinear Goal Programming Model for Efficient Asset-Liability Management of Property-Liability Insurers

Since the telecommunications companies experience great competition, high churn rate, data traffic issues during the Covid-19 pandemic and the upgrade to 5G connectivity, the finance management of a telecommunications company should be analyzed to study the volatility and returns in the sector. This paper aims to develop a goal programming model to examine the asset and liability management of a telecommunication company, namely Telekom Malaysia Berhad (TM) in Malaysia. The result of this study shows that TM has achieved all the goals in maximizing assets, equities, profits, earnings and optimum management item while minimizing liabilities over the period of study from 2015 to 2019. Potential improvements on these goals have also been identified through this study. This paper has also contributed to the studies in financial management since past studies have not been done on asset and liability management in telecommunications companies which is rapidly growing and expanding even while the world is suffering from economy crisis during this pandemic.

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MATHEMATICAL MODELING OF ASSET LIABILITY MANAGEMENT IN BANKS USING GOAL PROGRAMMING AND AHP

Indian Journal of Finance and Banking ◽

10.46281/ijfb.v4i4.899 ◽

2020 ◽

Vol 4 (4) ◽

pp. 1-19

Author(s):

Jyoti Tanwar ◽

Arun Kumar Vaish ◽

N V M Rao

Keyword(s):

Goal Programming ◽

Banking Sector ◽

Programming Model ◽

Balance Sheet ◽

Annual Reports ◽

Primary Data ◽

Asset Liability Management ◽

Liability Management ◽

Priority Weights ◽

Gp Model

Asset Liability Management has gained popularity in the banking sector. Earlier banks focused on asset allocation, but now the management of assets and liabilities is equally essential. Asset liability management targets the optimum distribution of funds in assets and managing liabilities so that banks can earn higher profits and minimize risk. In this paper, the optimization of assets and liabilities of Indian banks has been concentrated using mathematical models. Combining the Analytical Hierarchy Process (AHP) and Goal Programming (GP) model has been used to solve the optimization problem. AHP is a multi-criteria decision-making approach for deriving priority weights. Goal Programming is a linear programming model to solve complex issues having multiple objectives. In this paper, the primary data gathered from Bank senior managers have been analyzed using the AHP approach to derive weights for criteria. These weights are assigned to goals in goal programming to prioritize the goals. Secondary data on OBC bank is used in goal programming from 2010-2019 collected from OBC bank's annual reports and RBI websites. The findings show that OBC bank has the scope of improving its assets and liabilities position to increase its profit and minimize the risk. The model generates an optimum balance sheet that achieves the set goals and satisfies all the statutory and planning constraints. The same model can be useful for scheduled commercial banks in India with modifications concerning banks' targets and controls. The model developed in this paper is helpful for bank managers in planning and forecasting. AHP and GP's combined approach is unique in this paper, which uses experts' knowledge and applies it in the model. The model is created on the bank's realistic goals and constraints after carefully considering the issues faced by bank officials. The paper is limited to the Indian Banking system as other countries have different balance sheet structures and constraints.

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A Goal Programming Model for Capital Budgeting Decisions

Artha Vijnana Journal of The Gokhale Institute of Politics and Economics ◽

10.21648/arthavij/1981/v23/i3-4/116609 ◽

1981 ◽

Vol 23 (3-4) ◽

pp. 299

Author(s):

Jaidev Agarwal ◽

L. S. Porwal ◽

Kanti Swarup

Keyword(s):

Goal Programming ◽

Programming Model ◽

Capital Budgeting ◽

Goal Programming Model

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A Multicriteria Goal Programming Model for Ranking Universities

Mathematics ◽

10.3390/math9050459 ◽

2021 ◽

Vol 9 (5) ◽

pp. 459

Author(s):

Fernando García ◽

Francisco Guijarro ◽

Javier Oliver

Keyword(s):

Goal Programming ◽

Programming Model ◽

Decision Makers ◽

University Rankings ◽

Central Tendency ◽

Performance Variables ◽

World University Rankings ◽

Goal Programming Model ◽

Objective Quantification

This paper proposes the use of a goal programming model for the objective ranking of universities. This methodology has been successfully used in other areas to analyze the performance of firms by focusing on two opposite approaches: (a) one favouring those performance variables that are aligned with the central tendency of the majority of the variables used in the measurement of the performance, and (b) an alternative one that favours those different, singular, or independent performance variables. Our results are compared with the ranking proposed by two popular World University Rankings, and some insightful differences are outlined. We show how some top-performing universities occupy the best positions regardless of the approach followed by the goal programming model, hence confirming their leadership. In addition, our proposal allows for an objective quantification of the importance of each variable in the performance of universities, which could be of great interest to decision-makers.

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